Suits and Countersuits Over Arkansas Casino Drive

An anti-casino group recently filed a lawsuit in the Arkansas Supreme Court to keep a constitutional amendment allowing casinos in Boone, Miller and Washington county off the November ballot. In response, a pro-casino group countersued, contending the anti-casino group has no standing to file the suit. Former Governor Mike Beebe (l.) has come out against casinos.

Earlier this month, the anti-casino group, Committee to Protect Arkansas’ Values/Stop Casinos Now, filed a lawsuit in the state Supreme Court to keep off the November ballot Issue 5, a proposed constitutional amendment allowing casinos in Boone, Miller and Washington counties. The group claims the ballot’s language is misleading and fails to comprehensively inform voters about the consequences of the measure.

In response, Arkansas Winning Initiative, recently filed a motion arguing that the anti-casino group has no standing to file the suit, because it has not proven it would be harmed by the decision to allow the ballot vote. AWI also contends the Supreme Court does not have jurisdiction in the case.

According to campaign finance reports, Tahlequah, Oklahoma-based Cherokee Nation Businesses gave $400,000 to AWI in August and $1 million in June. If Issue 5 passes in the November election, CNB will operate the casino in Washington County in northwest Arkansas.

Arkansas Winning Initiative also reported receiving a $100,000 loan from Marc Williams of Branson, Missouri, in August.

Robert Coon, spokesman for another pro-casino group, Arkansas Wins in 2016, said, “Our proposal will create jobs, increase tourism and bring tax dollars back to Arkansas.” He noted each of the three casinos would be required to pay 1.5 percent of its net earnings to the city where they are located, .5 percent to the local counties and 18 percent to the state.

Jerry Cox, president of the faith-based anti-gambling group Family Council, called Issue 5 “the most ridiculous amendment I think I’ve ever seen. The only thing prospering is the casino itself. The rest of the community is either losing ground, or they’re economically flat. This opens Arkansas up to that kind of extreme gambling that goes on out in Las Vegas. The legislature won’t control it, the city governments won’t control it and the county governments won’t control it.”

Coon said the amendment would establish an Arkansas Gaming Commission, appointed by the governor, to regulate the casinos under the laws passed by the general assembly. “It will have that type of responsibility to make sure the public is protected, the casinos are operating in the manner that they should be and that, we think, is good for Arkansas,” Coon said.

He added, “Oaklawn and Southland will stop at nothing to protect their profits over the best interests of Arkansans. Opinions differ on this issue, which is one reason the framers gave the people a process by which they can directly amend the Arkansas Constitution.”

Stop Casinos Now reported it received $109,500 in August from the operators of Oaklawn Park in Hot Springs and Southland Gaming in West Memphis, racetracks that offer cards and table games and electronic gambling and do not want competition.

Campaign reports showed Arkansas Wins in 2016 has spent $15,000 on advertising and Arkansas Winning Initiative has spent another $5,700.

Closer examination reveals the amendment defines gambling as whatever is legal in states surrounding Arkansas and in Nevada. As a result, policymakers could be stifled in defining terms and setting limits. The amendment would allow sports betting and alcohol sales, including in Boone County, a dry county.

Issue 5 also would write into the Arkansas Constitution a permanent monopoly to Missouri businessmen Bob Womack of Branson and Jim Thompson of Blue Eye, their successors and assignees. As a result, no one could operate a casino anywhere in Arkansas besides Womack and Thompson, plus Oaklawn and Southland, which are limited by law to “electronic games of skill.” Oaklawn is owned by the Cella family of St. Louis, and Southland by Buffalo-based Delaware North.

Former two-term Governor Mike Beebe recently stated his opposition to the ballot issue. He said a statewide vote on the issue would run counter to the state’s tradition of allowing local communities to decide whether to allow liquor sales. “This amendment would deny our cities, towns and communities the ability to decide for themselves what kind of community they want to live in. This loss of local control is why I am opposed to this amendment and would encourage voters to vote no on Issue 5.”

Governor Asa Hutchinson also said he opposes the casino measure. The anti-casino group also announced 52 state legislators oppose Issue 5.